ESG126 Study Guide - Midterm Guide: Negative Relationship, Statics, E. B. Eddy Company

• School: Bishop's University
• Department: Environmental Studies & Geography
• Course: ESG126
• Professor: mercer

Document Summary

How people make decisions: people face trade off. Hour spent studying is one less hour spent sleeping. Efficiency: the property of society getting the most it con from its scarce resources. Equity: the property of distributing economic prosperity fairly among the members of society: the cost of something is what you give up to get it. Opportunity costs: rational people think of the margin. Marginal thinking -> selling a ticket to a standby passenger for instead of. Rational people: people who systematically and purposefully do the best they can to achieve their objectives. Marginal changes: small incremental adjustments to a plan of action: people respond to incentives. Incentives: something that induces a person to act. When the price of an apple rises, people decide to eat more pears and fewer apples because the cost of buying an apple is higher.